BONIFACIO WATER CORPORATION v CIR

GR No. 175142 July 22, 2013

Buri, Kenneth Roger R.

FACTS:
Bonifacio Water Corporation (BWC) filed its quarterly VAT returns from 4 th quarter of
1999 to 4th quarter of 2000.
For said period, BWC alleges that its input VAT included, among others, input VAT paid
on purchases of capital goods amounting to P65,642,814.65. These purchases
supposedly pertain to payment of contractors in connection with the construction of
their Sewage Treatment Plant, Water and Waste System, and Water Treatment Plant.
On January 22, 2002, BWC filed with RDO No. 44- Pateros and Taguig, an administrative
claim for refund or issuance of a tax credit certificate for the periods (4th quarter of 1999
to 4th quarter of 2000) paid.
CTA 2nd division originally only granted a refund of P40,875,208.64 but adjusted the
same to P45,446,280.55 upon reconsideration.
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Examination of the various official receipts presented by BWC to support its purchases
for capital goods, show that some of its purchases, such as rental, management fees and
direct overhead, cannot be considered as capital goods.
Official receipts under the name of Bonifacio GDE Water Corporation were disallowed on
the ground that the use of the said business name was never approved by SEC.

CTA En banc affirmed the decision.

ISSUES:
1.) Whether or not the CTA erred in not granting BWCs claim for refund or issuance of tax
credit certificate.
HELD:
No!
The change of name to Bonifacio GDE Corporation being unauthorized and without
approval from the SEC, BWC cannot now seek for a refund of input taxes which are
supported by receipts under that name (pursuant to Sec. 4.104-5 and 4.108-1 of RR No.
7-95 in relations to Sections 113 and 237 of the Tax Code).
The requisite that the receipt be issued showing the name, business style, if any, and
address of the purchaser, customer or client is precise so that when the books of
accounts are subjected to a tax credit examination, all entries therein could be shown as
adequately supported and proven as legitimate business transactions. The absence of
official receipts issue in the taxpayers name is tantamount to non-compliance with the
substantiation requirements provided by law.

 Taxpayers claiming for a refund or tax credit certificate must comply with the strict and
mandatory invoicing and accounting requirements provided under the 1997 NIRC, as
amended, and its implementing rules and regulations.
The absence of official receipts issued in the name of BWC is tantamount to
noncompliance with the substantiation requirements provided by law and, hence, the
CTA En Bancs partial grant of its refund on that ground should be upheld.